SMM7 March 24: China's magnesium alloy output in June 2020 was 20600 physical tons, an increase of 1% from the previous month and 2% from the same period last year. The output of magnesium alloy in June has little change compared with that in May, and the domestic downstream is still the main market. Exports are greatly affected, which has a lot to do with the shutdown of overseas car enterprises. In May 2020, China's magnesium alloy exports were 3065.58 tons, down 51% from the previous month and 52% from the same period last year. According to SMM research, most overseas magnesium alloy orders after April 15 have been delayed or even cancelled. Shanxi magnesium alloy smelter said that its magnesium alloy export orders have been delayed since late April, with only a small amount of exports from Japan and South Korea, and magnesium alloy export orders have decreased by about 70%, so magnesium alloy exports in June are expected to be similar to May. As most of China's magnesium alloy factories produce according to order, export orders are greatly reduced, while the domestic magnesium alloy market is negatively affected by the sales of automobile, 3C and other end products in the first quarter. Downstream accessories factories, magnesium alloy die-casting plants for magnesium alloy demand is also gradually weak. The output and demand of magnesium alloy are mainly affected by automobile production and sales. Magnesium alloy smelting plants in Wenxi region said that magnesium alloy orders in the Pearl River Delta region decreased by about 2/3, and those in the Yangtze River Delta region decreased by about 1/3, while export orders have been completely absent. Because magnesium alloys are mostly produced according to orders, some magnesium alloy factories begin to reduce or even stop producing magnesium alloys.
According to data from the China Automobile Association, China exported 62000 cars in June 2020, down 35.4% from the same period last year. Domestic magnesium alloy factories generally said that although the current magnesium alloy orders and output are relatively stable, due to the lack of automobile production and sales, the consumption of magnesium alloy is likely to be reduced later.